Fed's Key Inflation Rate Fell More Than Expected in June
In Today's Digital Newspaper
Railroad companies such as Union Pacific, CSX, and Norfolk Southern are facing significant profit declines amid a persistent freight recession.
Ford Motor has delayed its electric vehicle (EV) production targets and cautioned about escalating losses, citing slower-than-anticipated uptake of its EVs.
U.S. regulators plan to make large banks bolster their financial footing, moves that could have an outsize effect on companies such as American Express and Morgan Stanley that rely on types of fee income targeted by the new rules. Banking regulators on Thursday proposed new rules that could raise overall capital requirements by nearly 20% at the largest banks, officials said. More in Markets section.
The Bank of Japan surprised financial markets by choosing to ease its control over bond yields, the equivalent of an interest-rate increase.
Global coal usage this year is predicted to level with last year's record-setting high, according to a recent report from the International Energy Agency. Details in Markets section.
New legislation under consideration in the Senate could obligate automakers to continue including AM broadcast radio in all new cars, despite resistance from manufacturers of electric vehicles.
Russia/Ukraine items today include:
• Peter Zeihan on ‘the end of Ukrainian agriculture.'
• Russia's decision to withdraw from the Black Sea Grain Initiative is expected to challenge Ukraine's economy further.
• African leaders press Putin for grain deal.
• Russia nearly triples wheat exports to Africa in H1.
• The U.S./Russia relationship appears to be at a low point, with Russia's ambassador to the U.S. characterizing it as "practically nonexistent" following a recent development.
• Brazil denied an American request to extradite Sergei Cherkasov, an alleged Russian spy.
Lawmakers reappointed Phillip Swagel to a second four-year term as Congressional Budget Office director.
China has maintained its position as the world's largest meat importer since 2019, despite a recent decrease in imported meat volumes, according to a USDA Economic Research Service report. Details in China section.
China has accused unnamed U.S.-backed hackers of targeting its earthquake monitoring center, potentially for espionage purposes.
The Labor Department issued its first-ever hazard alert for heat and plans to step up enforcement in agriculture and construction, high-risk industries. "Federal law requires employers to protect workers against heat," says the alert, issued late Thursday. "Employers have a legal and moral responsibility not to assign work in high heat conditions without protections in place for workers, where they could be literally worked to death. This is true even in Texas, despite its recent law limiting local ordinances on heat illness protections." The alert added: "The agency is planning enhanced enforcement actions, with a strategic focus on geographic locations and industries where high heat impacts vulnerable worker populations. This means more inspection activity as well as a broader use of enforcement tools, especially where workers are in clear danger."
The U.S. Forest Service is awarding more than $1 billion in grants for the planting of trees that is aimed at helping to bring down temperatures in the long term. And the Department of Housing and Urban Development is providing "billions" to open cooling centers and make buildings more heat resistant.
The Biden administration is poised to issue a proposal as early as today ordering automakers to increase the average fuel economy of their vehicles.
The U.S. Supreme Court has allowed work to continue on the controversial Mountain Valley Pipeline, a $6.6 billion project managed by Equitrans Midstream. This decision resolves the company's request and nullifies lower-court orders that previously halted the construction. The pipeline is approximately 300 miles long and is supported by Sen. Joe Manchin, a Democrat from West Virginia. The Mountain Valley Pipeline project has, however, sparked serious backlash from environmental activists.
Facebook removed content related to Covid-19 in response to pressure from the Biden administration, including posts claiming the virus was man-made, according to internal company communications viewed by the Wall Street Journal.
MARKET FOCUS
Equities today: Asian and European stock markets were mixed in overnight trading. U.S. Dow opened around 180 points higher. In Asia, Japan -0.5%. Hong Kong +1.3%. China +1.8%. India -0.2%. In Europe, at midday, London +0.1%. Paris -0.2%. Frankfurt -0.1%.
U.S. equities yesterday: The major indices finished in the red, falling into negative territory late in the day. The Dow was down 237.40 points, 0.67%, at 35,282.72. The Nasdaq declined 77.17 points, 0.55%, at 14,050.11. The S&P 500 was down 29.34 points, 0.64%, at 4,537.41. All three indexes are still up for the week, but barely.
Railroad companies such as Union Pacific, CSX, and Norfolk Southern are facing significant profit declines amid a persistent freight recession. The downturn, marked by reduced sales, is being exacerbated by an uptick in labor costs. Second quarter operating profits for these companies have fallen by a minimum of 12% when compared to the same period last year. Signs of recovery from the freight recession remain scant, putting additional financial pressure on these railroad companies.
German chemical giant BASF has reported a decline in its earnings for the second quarter of 2023, attributing it to lower prices and volumes in several of its business sectors. However, the company's agriculture division stood out as an exception, where it managed to increase prices. In light of this, BASF has also reduced its full-year earnings outlook. In an effort to mitigate these losses and improve profitability, the company is rolling out cost-saving measures designed to yield annual savings of roughly 300 million euros (equivalent to $330.4 million). Despite the current downturn, BASF anticipates that the global demand for its products will not continue to decrease in the second half of 2023. This expectation is influenced by a decline in chemical raw material inventories across various customer industries. However, Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, indicated a cautious outlook, predicting a slow recovery due to an expected slower-than-anticipated growth in global consumer goods demand. As a result, he foresees that profit margins will continue to be squeezed. BASF's lackluster performance mirrors similar trends within the chemical sector, with other firms in the industry also presenting disappointing results in their recent earnings updates.
Biggest banks face 19% boost in capital requirements. U.S. banking regulators, including the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency, announced a significant overhaul of capital rules. This is proposed as a safeguard, compelling large lenders to bolster their financial buffers and better handle unexpected losses. Banks possessing assets of at least $100 billion are expected to see a 16% increase in the amount of capital they must hold. The eight largest banks could experience an estimated 19% surge, while lenders with assets between $100 and $250 billion will have to hold roughly 5% more capital.
The comprehensive overhaul covers risks associated with a range of financial products, such as credit-default swaps, corporate bonds, derivatives, repos, commodities, and option contracts. The involved agencies put forward different models to calculate risk-weighted assets tied to diverse products. This marks a significant shift in the way lenders calculate risks associated with their offered services. More details about this overhaul are disclosed in a 1,000-plus-page document released by the agencies.
Market quotes of note:
- Christine Lagarde, the ECB's president, suggested that the central bank could pause on raising rates in September, as data showed high prices sapping consumers of their buying power, putting the bloc's economy at risk. Data this morning from Germany showing that Europe's biggest economy is stagnating underscored this concern.
- Ford Motor has delayed its electric vehicle (EV) production targets and cautioned about escalating losses, citing slower-than-anticipated uptake of its EVs. According to CFO John Lawler, pricing is a significant factor impacting adoption rates. To tackle this, Ford has recently decreased prices on its electric F-150 Lightning pickup, rolling back multiple price hikes from the past years. "The transition to EVs is happening, it just may take a little longer," Lawler said after the automaker's second-quarter results. Still, Ford performed well in its second-quarter results, surpassing Wall Street's expectations driven by robust pricing and demand for their traditional and commercial vehicles.
- Scorched earth. With record temperatures spanning the globe, July is shaping up to be the hottest month on record, according to data released by space and weather divisions of the European Union and the United Nations. It surpasses a previous record set in 2019 and comes after last month registered as the hottest June ever. The rising temperatures, including in the Earth's oceans, prompted United Nations Secretary-General António Guterres to declare, "The era of global warming has ended; the era of global boiling has arrived."
Could a recession still be years away? Even though forecasters have predicted a downturn since the Federal Reserve began increasing interest rates more than a year ago, they have consistently pushed back the predicted start date of this predicted recession. A Wall Street Journal article says an unusual aspect is that this predicted recession would occur after only four years of economic expansion. In the recent history, expansions have averaged 8.6 years, which suggests a continuing economic expansion could potentially push the recession a few years into the future. The key challenge for the Federal Reserve, the article concludes, would be to manage inflation to a level that does not force the economy into a contraction.
Market perspectives:
• Outside markets: The U.S. dollar index was weaker, with the euro and British pound firmer against the greenback. The yield on the 10-year U.S. Treasury note was weaker, around 3.95%, with a mixed tone in global government bond yields. Crude oil was little changed, with U.S. futures around $80 per barrel and Brent around $83.70 per barrel. Gold and silver were higher ahead of the inflation updates, with gold around $,1955 per troy ounce and silver around $24.43 per troy ounce.
• The Bank of Japan surprised financial markets by choosing to ease its control over bond yields, the equivalent of an interest-rate increase. As a result, Japan's 10-year yield has reached its peak since 2014, a change that induced significant fluctuations in the value of the yen. This decision has prompted discussions about whether Japan is beginning to standardize its policy. Japanese stocks and bonds fell sharply. U.S. bond markets experienced a decline due to anticipations that increased yields in Japan could motivate investors to pull their money out and return it to Japan. This is significant because Japanese investors constitute the largest foreign group holding U.S. government debt. Despite the market's drop, the U.S. Treasury's 10-year yields remained steady at 4%, despite having increased by 13 basis points just the day before.
• Global coal usage this year is predicted to level with last year's record-setting high, according to a recent report from the International Energy Agency. Some analysts say this trend could potentially hinder initiatives to combat climate change by reducing fossil fuel consumption. The coal market, which experienced significant upheaval due to the trifecta of the Covid-19 pandemic, war in Ukraine, and other disruptions over the past three years, has reverted to patterns seen before the pandemic. Decreasing demands for coal in Europe and the U.S. have been counterbalanced by burgeoning coal use in Asia.
CONGRESS
— Legislative activity in the House abruptly stalled Thursday due to escalating disputes over spending levels and contentious social matters, raising concerns about a possible government shutdown before the Sept. 30 deadline.
As House and Senate members have now left Washington D.C. for the extended August recess, none of the budget disagreements have been resolved.
The House's planned return date is Sept. 12, leaving just 12 scheduled workdays that month to accomplish a significant agenda. This includes the passage of 11 out of 12 annual appropriations bills, and resolving differences with the Senate, making the threat of a shutdown at least possible.
Background: The two chambers are about even at the Committee level, with all completed by the Senate and all but two by the House. The House and Senate have both completed one appropriations bill, with the Senate last night clearing its version of the fiscal year (FY) 2024 defense authorization bill in an 86-11 vote, two weeks after House Republicans pushed through a party-line bill packed with controversial provisions. It's the first time since 2018 that the Senate Appropriations panel marked up all 12 annual funding bills
Of note: More than $100 billion separates the House and Senate government-funding bills, a gap that will make bicameral talks especially challenging ahead of the Sept. 30 deadline to avoid a shutdown.
House Speaker Kevin McCarthy (R-Calif.) tempered the delay in the appropriations process. McCarthy met with Senate Majority Leader Chuck Schumer (D-N.Y.) and indicated they discussed the possibility of beginning negotiations on the FY 2024 spending measures before Sept. 30. "Leader Schumer had the same commitment that I had. Let's get this work done and let's try to get it done before Sept. 30," he said.
McCarthy said the House GOP already is cutting spending. "It's not just the Ag bill. It's any bill that comes to the floor. We are going to look at any place that we can find and save money, because we're saving the hard-working American taxpayer their money," he said.
The chances of approving a continuing resolution (CR) are murky, considering the profound disagreements over expenditures and the nonchalance of extreme conservatives toward the repercussions of a federal closure. "If necessary, we should exploit a governmental shutdown as a bargaining chip," stated Rep. Bob Good (R-VA) this week. "The majority of our actions here are flawed, to begin with."
President Joe Biden and legislative heads had optimistically aimed for a tough but agreed compromise on spending limits to prevent a debt default, which they believed would facilitate a comparatively hassle-free budget process. However, these plans have been disrupted due to some House hardliner insistence on more substantial cuts and inclusion of language on topics like abortion, gender, and other societal issues.
As for the House FY 2024 Ag/FDA appropriations bill, Democrats and hardline Freedom Caucus members are both unhappy with House appropriators' proposal to fund agriculture programs. The far-right-wing faction of the Republicans holds the view that recouping previously approved dollars via the current bill, known as rescissions, shouldn't be classified as cuts. The internal conflicts within the House GOP, including a contentious abortion pill proposal, leave the Agriculture/FDA spending plan in a state of uncertainty.
Rep. Victoria Spartz (R-Ind.) wants to cut off funding to USDA to operate the fee-funded research and promotion programs, known as checkoffs. No taxpayer dollars are used in administering checkoff programs, which are funded entirely by the producers who pay into them. Rep. Spartz took to the floor during a procedural hearing on the House Agriculture Appropriations bill (HR 4368) to defend her amendment, where she repeatedly claimed commodity checkoff boards lacked transparency. But the American Soybean Assn. points out that "each national checkoff program follows rigorous auditing and financial documentation required by USDA and the U.S. Government Accountability Office."
Freedom Caucus Chairman Scott Perry (R-Pa.) filed amendments attacking various aspects of the federal sugar program, which is regularly targeted during farm bill debates.
Although the final House bill will not become law due to Democratic control of the Senate and President Joe Biden's very likely refusal to sign, the disputes hint at future challenges when considering the farm bill this fall. In the Rules Committee meeting Wednesday, legislators debated about the spending amount in the bill for nutritional programs, specifically focusing on the Special Supplemental Nutrition Program for Women, Infants, and Children. Rules ranking member and House Agriculture Committee member Jim McGovern (D-Mass.) lambasted agricultural appropriations leader Rep. Andy Harris (R-Md.) for not sufficiently funding the program. McGovern criticized the lack of support for vulnerable populations, sarcastically commenting about newborns lacking super PACs. He also denounced the bill as "one of the most offensive" ones he's seen on nutrition-related matters. Harris defended his funding cuts, arguing that they are needed to control excessive spending in Washington D.C.
The Senate included an amendment to the defense bill passed Thursday aimed at curbing the use of crypto in illicit transactions. The measure would require the Treasury Department to set examination standards for financial firms engaged in crypto activities. It would also mandate that the department conduct a study on combating tools used to make crypto transactions more anonymous. That would include recommendations for legislation or regulation to address the technologies and data on their usage.
— New legislation under consideration in the Senate could obligate automakers to continue including AM broadcast radio in all new cars, despite resistance from manufacturers of electric vehicles. On Thursday, the Senate Commerce, Science, and Transportation Committee voted to move forward with a revised bipartisan bill (S 1669). This bill directs the Department of Transportation to mandate carmakers to preserve AM radio functionality in all new vehicles without imposing additional charges. This legislation could have significant implications for future car models, especially those produced by electric vehicle manufacturers.
RUSSIA/UKRAINE
— Peter Zeihan on ‘the end of Ukrainian agriculture.' Zeihan, an American author on geopolitics, writes that the situation concerning the grain deal between Russia, Ukraine, and Turkey, brokered by the United Nations, appears to be deteriorating. Russia has withdrawn from the agreement, and Ukrainian agriculture is facing a severe threat. He says Russia has reportedly been engaging in aggressive actions towards the infrastructure that facilitates the delivery of Ukrainian wheat, corn, and sunflower to global markets. The intention behind these actions could be a bid to undermine the Ukrainian economy and potentially incite a famine in the region.
As alternative paths for exporting these commodities prove challenging and inefficient due to cost and risk factors, Ukraine's exports have already taken a significant hit, decreasing by two-thirds even prior to this deal's collapse. The winter wheat crop, in particular, is expected to greatly suffer, with the current situation predicting it could be the last sizable harvest to make it to international markets, Zeihan notes.
If Russia persists in targeting agricultural infrastructure in Ukraine, Zeihan says not only might the Ukrainian capacity to export crops be affected, but its potential to feed its own citizens could also be compromised. There are predictions that Ukraine could transition from an exporter to an importer of food within a year due to this situation.
Facts and figures: Ukraine has harvested 11.2 million metric tons (MMT) of the 2023 grain crops, according to the Ukrainian Ministry of Agriculture, including 8.063 MMT of wheat, 2.881 MMT of barley and 280,100 metric tons of peas.
— Russia's decision to withdraw from the Black Sea Grain Initiative is expected to challenge Ukraine's economy further. This move might cause a rift with China, the major importer of Ukrainian grain, as reported by the Wall Street Journal (link). Statistics reveal that 24% of grain exports through the initiative were directed towards China, with Spain (18.2%) and Turkey (9.9%) trailing behind. Additionally, out of all the corn exports through this deal, 34.2% were shipped to China, while 25.7% were delivered to various other countries and 18.3% to Spain. Despite Russia's exit, China has urged for the continuation of the deal, although so far, this hasn't shifted Russia's stance. Russia reaffirmed that it could independently manage the quantities of agricultural goods previously transported through the Black Sea deal.
— African leaders press Putin for grain deal. African leaders pressed Russian President Vladimir Putin to renew a deal on the export of Ukrainian grain and move ahead with their peace plan to end the Ukraine war. The African leaders are fearful of the war's impacts on food prices, especially since Russia ended the Black Sea grain deal. Putin said rising world food prices were a consequence of Western policies that predated the war in Ukraine. He said Moscow respected the African peace proposal on Ukraine and was carefully studying it.
— Russia nearly triples wheat exports to Africa in H1. Russia exported 9 MMT of wheat to African countries during the first half of this year, Interfax news reported, citing Russian Agriculture Minister Dmitry Patrushev. That was nearly triple the level of the same period last year. Overall ag exports nearly doubled during the same period.
— The U.S./Russia relationship appears to be at a low point, with Russia's ambassador to the U.S. characterizing it as "practically nonexistent" following a recent development. This change in diplomatic relations is mainly due to the Biden administration's decision to send cluster munitions to Ukraine. Cluster munitions, often called cluster bombs, are weapons that carry numerous smaller bomblets or submunitions. These weapons have a wide area of effect, as the canisters break open at a specified altitude, distributing bomblets across a large area. While these weapons can potentially be highly effective against military targets, they pose significant risks for civilian populations due to their wide-range impact. Ukraine has begun using these cluster bombs, supplied by the United States, as part of a counteroffensive which is gaining momentum after initially slow progress. However, the use of cluster munitions is controversial due to its potential effects on civilians, escalating further tension between the involved nations.
— Brazil denied an American request to extradite Sergei Cherkasov, an alleged Russian spy. The U.S. had possibly hoped to swap Cherkasov for Evan Gershkovich, a correspondent for the Wall Street Journal jailed in Russia on trumped-up charges of espionage. The U.S. indicted Cherkasov in March, accusing him of studying in the country under a false identity while gathering intelligence about the war in Ukraine.
PERSONNEL
— Lawmakers reappointed Phillip Swagel to a second four-year term as Congressional Budget Office director, House and Senate Budget Committee leaders announced yesterday. His next term will end Jan. 3, 2027.
— Senate Majority Leader Chuck Schumer (D-N.Y.) on Thursday filed motions to cut off debate on Philip Jefferson's nomination to be vice chair of the Federal Reserve and on Lisa Cook and Adriana Kugler's nominations to sit on the Fed's Board of Governors. This sets up Senate votes for early September to install three of President Joe Biden's picks to the central banking system.
CHINA UPDATE
— China has maintained its position as the world's largest meat importer since 2019, despite a recent decrease in imported meat volumes, according to a USDA Economic Research Service report. In 2022, its imports were 43% higher than those of Japan, the second-largest meat-importing country. Factors such as disease, strict environmental laws, and the departure of small-scale farmers have limited China's meat supply, resulting in an increase in domestic prices and making imports more appealing.
Pork, the most consumed meat in China, generally dictates the nation's meat supply and demand trends. The African swine fever epidemic in 2019 substantially lowered China's pork supply, which boosted its position as the world's top meat importer over Japan. Even though pork production recovered and meat imports subsequently fell, China retained its ranking in 2022.
At the same time, beef imports have been increasing because longer production cycles, insufficient grazing lands, and persistent disease have hindered China's ability to meet domestic beef demand. Chinese consumers are also consuming more poultry—mainly because it tends to be the most affordable meat—yet rising feed costs and diseases have inflated domestic poultry prices, leading to higher poultry imports.
While China's meat consumption appeared to reach a peak after 2014, statistical models project that consumption will continue to rise through 2031. Trends such as changes in diet and moderate growth in income and prices drive this prediction. However, the Covid-19 pandemic and subsequent economic downturn in 2022 have dampened consumption and the associated import prospects. Other factors — like ongoing disease risks and the high cost of livestock feed, which lowers profitability for local producers — continue to impact the market.
— China has accused unnamed U.S.-backed hackers of targeting its earthquake monitoring center, potentially for espionage purposes. City administrators in Wuhan reported that malware was found in an earthquake reporting system's data collection stations, operated by the Wuhan Seismic Monitoring Centre in Hubei. Investigators indicated that a Trojan virus created a backdoor into the compromised devices, allowing the hackers to take control and steal seismic intensity data.
While the police's statement did not name a specific source, a report by CCTV suggested that the U.S. was behind the attack. China condemned the incident as "irresponsible behavior" but refrained from officially naming the U.S. as the perpetrator. Geoscientist Zhao Weiguo highlighted that detailed seismic data can potentially be used for military purposes, such as identifying underground structures suitable for air-raid shelters or bunkers.
It was also mentioned that the U.S. Geological Survey operates some seismic monitoring stations in China. Zhao warned that hacking the system could either allow for theft of critical data or sabotage of the system, both of which could have serious consequences, especially during conflict.
These accusations from China come at a time when Washington and Western intelligence agencies have blamed Beijing for conducting cyber intrusion campaigns globally, including the reported hacking of the email accounts of high-ranking U.S. officials and potential threats to critical U.S. infrastructure.
China's foreign ministry has labeled these claims from the U.S. as "attacks and smears." Mao Ning, ministry spokeswoman, insisted that the U.S. should stop "politicizing and weaponizing" cybersecurity and urged for common rules to be established and followed through dialogue.
ENERGY & CLIMATE CHANGE
— The U.S. Supreme Court issued an order permitting Equitrans Midstream Corp. to continue construction of the Mountain Valley Pipeline in West Virginia, thus overturning a lower-court ruling that had halted the project. This decision is seen by some as a victory for Sen. Joe Manchin (D-W.Va.).
In a brief statement, the Supreme Court suggested it might consider legal challenges posed by environmental groups, however, no clear reason was given as to why it decided to allow the pipeline construction to go forward.
This decision represents a setback for the Wilderness Society and other environmental organizations that sought an injunction to stop the project. They contended that the construction of the Mountain Valley Pipeline would detrimentally affect endangered species and accused the Forest Service and Bureau of Land Management of violating environmental laws by greenlighting the project. Lawyers representing these groups argued that a 19th-century Supreme Court ruling established that Congress can outline how court cases should be heard, but stressed that the Supreme Court should not dictate how federal courts must rule, as this would constitute a constitutional infraction on judicial powers.
In contrast, attorneys for the pipeline firm stated the need for swift action from the Supreme Court to keep the pipeline's build-out plans on schedule. The company aims to complete the 300-mile pipeline in time for winter when demand for natural gas increases. It's reported that most of the pipeline, except a 3-mile segment crossing the Jefferson National Forest, is essentially complete.
Background. Designed to meet the growing energy demand in the South and Mid-Atlantic regions, this $6.6 billion project delivers gas from the Marcellus and Utica fields in Pennsylvania and Ohio. However, the project's timeline has been hampered by several court challenges. Notably, the Supreme Court ruling revolved around two disputes brought forth by the Wilderness Society and ten environmental groups.
Several lawmakers, including Manchin, have championed the project and its continuation. Sen. Manchin, up for re-election in 2024, expressed his relief at the Supreme Court's decision, stating it upheld the law passed by Congress and sanction by the President. Similarly, Patrick Morrisey, West Virginia's Attorney General, commended the decision and highlighted the project's importance for West Virginia and the nation.
West Virginia Governor Jim Justice Sen. Shelley Moore Capito (R-W.Va.) also provided statements supporting the Supreme Court's decision, emphasizing the pipeline's value for American energy and jobs.
— The Biden administration is reportedly preparing to propose a mandate that would require automakers to enhance the average fuel efficiency of their vehicles, with persons familiar with the situation indicating that the announcement could come as early as today. This proposed regulation, anticipated to be announced by the National Highway Traffic Safety Administration, will apply to vehicle models of 2027 and onwards.
This potential policy announcement comes during a time of increasing gasoline prices and an ambitious push from the Biden administration for 50% of all vehicles sold in the U.S. to be electric or emissions-free by 2030. The prior proposition from this governmental body last April required automakers to upgrade their average fuel economy to about 49 miles per gallon by 2026.
General Motors (GM) has already expressed concerns to the Environmental Protection Agency over the proposed emissions requirements. In a July 5 filing, GM declared that federal regulations and separate legislations in six states might necessitate selling more than 50% of automobiles from electric vehicles (EVs) by 2030 — an objective the Biden administration supports but that GM suggests might be challenging to meet.
HEALTH UPDATE
— The U.S. Centers for Disease Control and Prevention (CDC) is raising an alarm about the link between lone star tick bites and meat allergies. It warned that these tick bites might lead to alpha-gal syndrome (AGS), a condition that has affected up to 450,000 people since 2010. This disorder is triggered by alpha-gal, a sugar present in meats like pork, beef, and lamb, as well as mammalian-derived products including milk products and certain medications. Furthermore, consumption of these alpha-gal-containing products post a tick bite can result in serious allergies. As there is no cure for AGS, sufferers must avoid these products for life. CDC warns that the incidences of AGS in the U.S. are predicted to rise with the expanding geographic range of the lone star tick and increasing testing trends.
Johanna Salzer, a senior author at CDC, suggested that the actual burden of AGS could actually be higher due to challenges in diagnosis. Symptoms can be non-specific and inconsistent, there might be difficulties in accessing healthcare, and there's also a lack of awareness amongst clinicians, leading to a huge number of potential undiagnosed cases.
POLITICS & ELECTIONS
— White House rules out pardon for Hunter Biden. The White House said Thursday that there is no possibility that President Biden would end up pardoning his son, Hunter Biden. A federal judge on Wednesday rejected Hunter Biden's plea deal on tax charges and said that she wasn't ready to accept the terms of a revised deal.
